Turnspire Capital Partners has acquired USG Water Solutions from Veolia North America, a subsidiary of Veolia Environnement.
USG is a provider of maintenance services to municipal and private water companies in 47 states and also provides asset management programs for municipal water and wastewater infrastructure including water storage tanks, pipe networks, and concrete structures. USG has more than 450 employees and headquarters facilities in Atlanta and Perry, Georgia.
The operations of USG are comprised of businesses that previously operated as Veolia Advanced Solutions and Suez Advanced Solutions. In March 2022, Veolia North America acquired the United States and Canadian water and wastewater treatment assets of Suez, SA.
With the closing of the acquisition of USG, Turnspire has named John Flaugher as the company’s new president and chief executive officer. Mr. Flaugher has senior management experience in the water, chemicals, and industrials segments, and from 2013 to 2016 he was the president and chief operating officer of the USG business (then Suez Advanced Solutions) where he was responsible for sales, operations, and engineering. Earlier in his career, he was a vice president at Nexeo Solutions and held multiple senior executive positions with Nalco Chemical.
“I am energized to rejoin USG, an iconic company in our markets with best-in-class service and quality,” said Mr. Flaugher. “Turnspire’s financial and strategic resources, as well as its track record of operational excellence and investing in carve-outs, will position USG for long-term success. Our management team and I will work closely with Turnspire to execute a wide range of growth and operational initiatives to capitalize on the compelling trends in the water end markets.”
New York City-based Turnspire invests in companies with revenues between $50 million and $400 million, positive or negative EBITDA, and valuations up to $125 million. The firm specializes in corporate carve-outs, family ownership transitions, companies in financial or operational distress, complex and multi-constituent transactions, and out-of-favor or misunderstood industries.
“We are thrilled to acquire this incredible business,” said Ilya Koffman, the managing partner of Turnspire. “USG pioneered the tank maintenance program over thirty years ago and has maintained its position as the pre-eminent supplier in the market as a division of larger global corporations, most recently Veolia. As an independent company under Turnspire’s ownership, and led by John Flaugher and the talented current management team, USG can build on its legacy to achieve operational excellence and sustainable growth in tanks under management.”
“We enjoyed our collaboration with Turnspire during the transaction process and are confident that USG is in good hands with an owner focused on the growth and development of the business,” said Karine Rouge, the chief executive officer of the municipal water group of Veolia North America. “We wish USG and Turnspire well in the future.”
Veolia North America, a subsidiary of Paris-headquartered Veolia Environnement, provides water and wastewater treatment, commercial and hazardous waste collection and disposal, and energy management services. The Boston-headquartered company has more than 10,000 employees at 350 locations across North America.
Harris Williams was the financial advisor to Turnspire and Houlihan Lokey was the advisor to Veolia North America.
© 2023 Private Equity Professional | March 3, 2023
